What is HomePath and what are the benefits

This word HomePath is really starting to pop up everywhere lately and a lot of people have no clue what the benefits are of the Homepath program. Most Fannie Mae bank owned properties are HomePath homes. Fannie tries to get these homes in livable condition, so they might be in better shape than your normal bank owned property. Fannie Mae gives incentive to try and get the financing back. You can go to www.HomePath.com and see all the properties that are available in your area for the HomePath program.

The mortgage process is a little different when financing a HomePath, so you will want to work with a loan officer who has closed these types of loans to insure a smooth process. I have personally closed 10 HomePath loans over the last year and I have become very proficient in this program on both the mortgage and renovation.

There are 2 types of HomePath programs, HomePath mortgage and HomePath renovation. The HomePath mortgage is the most popular.

Benefits of HomePath mortgage:

3% down option that can be gifted from a close blood relative

Flexible mortgage terms with fixed and adjustable rate options

Interest only is available

You can have as low as a 660 credit score

You can get financing as an investor with 15% down

No appraisal required

No Mortgage Insurance

Benefits of HomePath renovation:

3% down option

You can have as low as a 660 credit score

You can get financing as an investor with 25% down

An Appraisal is required on the renovation

No Mortgage Insurance

Cosmetic renovation up to $33,500 built in

The HomePath mortgage and HomePath renovation have their own distinct logos and you when you visit www.HomePath.com you can see what designation each property falls under by the logo.

The downside to these HomePath programs are that the rate is between .5% - .625% worse than regular conventional.

While this is a great program, there are other programs out there that might better fit your financial goals. I highly suggest talking with a Loan Officer about your options. Not only have I closed HomePath mortgage and renovation loans but I have closed 7 FHA 203k loans and I have closed a couple no monthly MI conventional loans with 5% down.